Environmental markets

Mercuria is committed to driving the transition to cleaner and more sustainable energy.

The environmental products team helps our partners to reduce their emissions and manage carbon pricing across the world.

Carbon plays a central role in the convergence of world energy markets, hence carbon origination and trading complement Mercuria’s portfolio of activities. We are involved in trading and risk management, structuring innovative solutions, identifying and managing risks and being active on all major carbon exchanges and having lines for OTC deals with many end-users, including governments, utilities and industrial concerns. We also invest in mature and emerging low carbon technologies, carbon abatement and offset projects including natural climate solutions.

Mercuria has been involved in the carbon markets since 2008, initially by assisting Chinese companies develop and monetize offsets from emissions reduction projects under the United Nations Clean Development Mechanism (CDM)

We participate in China’s national Emissions Trading Scheme (ETS), building up on our strong client base in the country as well as our experience from similar scheme in other regions of the world (EU, USA).

In Europe we trade nearly 10% of the total annual carbon allocations on both the EU emissions trading scheme (ETS) and the UK ETS. We also trade renewable energy certificates (RECs) and Upstream Emission Reductions (UERs) and produce and trade biodiesel.

In North America, we trade RECs, carbon within the RGGI cap & trade program, Renewable Identification Numbers (RINs) within the Renewable Fuels Standard program (RFS), LCFS credits and produce and trade biofuels such as methane and ethanol. We also trade nutrient credits that were recently introduced in Pennsylvania as a means of helping to safeguard the Chesapeake Bay environment.

At a global level we are involved in the voluntary carbon market and our Minerva Bunkering subsidiary offers a carbon neutral bunker fuel solution to customers.